Fair Practice Code
The FPC is made to ensure fairness and transparency in dealings with the customers of ARTH and applies to all products and services offered by it.
Purpose & Objective:
This Fair Practice Code (“FPC” or the “Code”) is framed in accordance with the guidelines outlined in the Master Direction DNBR.PD.007/03.10.119/2016-17 and Circular DOR(NBFC)(PD)CC. No.112/03.10.001/ 2019-20 issued by the Reserve Bank of India. This FPC is made with the intent to ensure fairness and transparency in dealings with the borrowers/customers of Arthimpact Digital Loans Private Limited (“ARTH” or the “Company”) and applies to all products and services offered by it. All employees, management and the Board of ARTH are bound by this FPC. The Code, as revised from time to time, will be available on the website of the company for information of various stakeholders.
Key Commitment
  • ARTH will act in accordance with the FPC to ensure fulfilment all its following social/business goals:
    – livelihood support
    – micro-enterprise finance
    – hyper local economy development
  • Company will make sure all its dealings are based on principles of integrity and transparency
  • Company will make sure all the products and services are in line with relevant laws and regulations
This FPC applies to the following areas:
  1. Applications for loans & their processing
  2. Loan Appraisal and terms/conditions
  3. Disbursement of loans including changes in terms and conditions
  4. Rate of Interest charged
  5. Customer Grievance Redressal
  6. Client Protection
1) Application for loans and processing
  • As a part of lending activity, loans will be provided to customers for their business requirements ranging from small to medium sized enterprises.
  • All communications to the borrower shall be in the vernacular language or a language as understood by the borrower.
  • The loan application form would also indicate the documents to be submitted with the application form.
  • The form would include information about the fees/charges, if any, payable for processing, prepayment options and any other matter which affects the interest of the borrower
  • The Company shall issue an acknowledgement receipt for all loan applications and the time frame within which loan applications will be disposed off will be indicated in the acknowledgement.
  • Company would convey in writing, after due consideration the main reason(s), which have led to rejection of the loan application(s).
2) Loan appraisal and terms/conditions
  • ARTH would convey to the borrower in the vernacular language as understood by the borrower by means of a sanction letter or otherwise, the amount of loan sanctioned along with the terms and conditions including annualized rate of interest and the borrower’s acceptance of these terms and conditions will be obtained and a kept in records.
  • A copy of the loan agreement along with a copy each of all enclosures quoted in the loan agreement will be furnished to the borrower at the time of sanction / disbursement of loan.
  • ARTH would conduct credit assessment of all the loan application(s) in line with the credit policy and relevant regulatory guidelines issued by RBI or any other statutory authority.
3) Disbursement of loans including changes in terms and conditions
  • ARTH would ensure timely disbursement of loans in accordance to the terms and conditions governing such sanction.
  • Company shall give notice to the borrower in the vernacular language or a language as understood by the borrower of any change in the terms and conditions including interest rates, service charges etc.
  • ARTH also ensures that changes in interest rates and charges shall be effected only prospectively.
  • Any decision to recall/accelerate payment shall be in consonance with the loan agreement.
4) Rate of Interest charged
  • Rate of Interest, processing fee and any other charges would be determined on the basis of relevant factors such as cost of funds, margin, risk premium etc. A separate policy outlining the principles and procedures for determination of the rates will form the basis for this opinion.
  • The rate of interest and the approach for gradation of risk and rationale for charging different rate of interest for different category of borrowers, wherever applicable, shall be disclosed in the application form and sanction letter.
  • The rates of interest would be annualized, to make the borrower aware of the exact rates that would be charged to their account.
5) Customer Grievance Redressal
  • ARTH has a well laid out Grievance Redressal Mechanism to resolve disputes raised by customers.
  • The mechanism followed by the company, together with details of the grievance redressal officer and that of the Regional Office of the RBI, for the benefit of the customers, would be displayed at all places where business is transacted:
  • In case the complaint/ dispute is not redressed within a period of one month, the customer may appeal to:


Department of Supervision,
Reserve Bank of India,
Central Office, World Trade Centre,
Centre I, Cuffe Parade,
Colaba, Mumbai – 400005
Email: [email protected]

6) Client Protection
  • ARTH has duly adopted the ‘Code of Conduct’ and the ‘Code for Responsible Lending’ as outlined by Sa-Dhan. To the extent of applicability on the company, ARTH shall maintain adherence to the same at all times in all dealings.
  • In the matter of recovery of loans, ARTH will not resort to undue harassment.
  • ARTH will ensure that its staff is adequately trained to deal with the customers in appropriate and respectful manner.
  • Company will not charge any foreclosure/prepayment penalties on any floating rate term loan, sanctioned for purposes other than business to individual borrowers, with or without co-obligant(s)
  • In case of receipt of request for transfer of borrowable account, either from the borrower, which proposes to take-over the account, the consent or otherwise i.e., objection of the Company, if any, should be conveyed within 21 days from the date of receipt of request.
  • Company will treat the personal information of customers/borrower as private and confidential even when they are no longer a customer. It will not reveal the personal information or details of the customers’ account to any third party, other than in the following four exceptional cases when required by law, or to protect any kind of fraud, or with customer’s permission.
  • In cases where sourcing of clients is done by any external entity, complete care and diligence shall be followed in ensuring that the entity follows appropriate client protection standards in consonance with this FPC.
Review and Modification
By using the website and/or registering yourself with us you authorize us to contact you via email or phone call or SMS and offer you our services, impart product knowledge, promotions running with us & offered by third parties, for which reasons, personally identifiable information may be collected. And irrespective of the fact, if you have also registered yourself under DND or DNC or NCPR services, you still authorize us to give you a call or SMS for the above-mentioned purposes.
Your Consent
This FPC and the functioning of the Grievance Redressal Mechanism shall be reviewed by the Board on periodic basis be modified with respect to with regard to changes in the company operating model, product and service offerings, external environmental factors and modifications in the stated master direction & circular or any new introduction thereof. A consolidated report of review of the FPC shall be submitted to the Board at regular intervals.